March 20, 2018

Binani Cement Bid- Make Non Promoter Shareholders a Party

We continue to hold on to our shares of Binani Cement.Our interests should be considered at the the NCLT proceedings. We should be made a Party to the legal proceedings.Between Dalmia Bharat and Ultratech we support that Company which offers us more ( market value wise ) shares of their own company in lieu of our Binani Cement shares.===========

February 21, 2018

Binani Cement Undervalued in NCLT Say Promoters

In a filing at the National Company Law Tribunal, Kolkata, Binani Industries has also said the resolution professional appointed for the company, Vijaykumar Iyer, and Deloitte, have vested interests in undervaluing the company so that they can give their “favourite bidder” the company.“It appears the valuation done by the resolution professional is absolutely wrong on account of valuers being misled by the RP, who has a personal interest in undervaluing the corporate debtor (Binani Cement),”

February 14, 2018

Promoters use clever moves to forcibly eject Public shareholders when ever they feel like i.e. when the Company has excellent future prospects or when it suits the Promoters.

1 ) Selective cancellation of Non Promoters shares.2 ) Conversion of Equity shares in to Redeemable Preference Shares.3 ) Consolidation of face value of one share to a Higher Denomination .In all cases , valuers are appointed and Paid by the Company. Thus they are Promoters' Agents.--------------------------

If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority holding at that rate .

The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate.

For example if FCI OEN Connectors Limited feels that Rs.767 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy at the same rate the majority shares from the Promoters.

A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders

Ban All Face Value Consolidations to Higher Denominations

Whereas Split of the face value of one share to a Lower denomination should be allowed ,Consolidation to a Higher Denomination should be absolutely banned by SEBI.Consolidation to a Higher Denomination was done by Binani Metals, Rasoi Limited , attempted by Digvijay Finlease ( later withdrawn under Public shareholders' pressure ) and , now, being attempted ( but opposed by shareholders ) of Macrofil Investments Ltd ( a Nusli Wadia Company ).

Macrofil Investments is an Investment Holding Company of Nusli Wadia group ( Bombay Dyeing, Britannia , Bombay Burmah , National Peroxide etc ).Marofil Investments holds ( on a very small capital base of Rs.44 Lakh ) inter alia one third of National Peroxides' Equity.In the last one year Market price of shares of National Peroxide has gone up from Rs. 600 to Rs.2000.Macrofil Investments has , very cleverly , devised a plan to consolidate face value of one share from Rs. 10 to Rs. 5000.All the Non Promoter shareholders would be evicted.The rate set is around Rs. 3400 per share. This has been worked out by Valuers appointed and paid by Macrofil Investments.The realistic rate should be Rs. 10,000 + ( for Rs.10 share ).file:///C:/Documents%20and%20Settings/admin/My%20Documents/Downloads/EGM%20NoticeMacrofil%20(2).pdf=========================================================

October 13, 2017

=======================Blog's old postsTill date, the most powerful tool in the hands of minority shareholders has been bringing a suit for oppression and mismanagement, said Suhail Nathani, managing partner, Economic Law Practice. "Under the 2013 Companies Act, Section 245, over 100 shareholders can also file a class action suit but its application and enforcement is still nascent," he said.

December 08, 2010

Promoters initially invite public investment by selling shares in their holding companies . These holding companies promote new companies Over a period of time their promoted ventures succeed and the original investment made by the holding company multiplies many times over in value .

Now , instead of genuinely sharing the wealth with all the stakeholders , non promoter minority share holders of original holding companies are treated by Promoters as UNWANTED , like poor relatives at a rich cousin's marriage party.